On the occasion of Diwali, important news has come to light for government employees and bank employees. Central government employees and pensioners are awaiting an increase in dearness allowance (DA) effective July 2026. This year, a DA increase of 3 percent is expected. Meanwhile, the Maharashtra State Cooperative Bank has announced a 14.25 percent bonus for its employees. This will make Diwali even sweeter for bank employees.

Central government employees expect a 3% DA increase.
Assuming the current dearness allowance for central government employees is 60%, a 3% increase could take it to 63%. This increase is expected to benefit 12 million employees and pensioners. However, no official announcement or approval has yet been received from the central government.

Will I get three months' arrears?

Following the approval of the DA hike with retroactive effect from July 1, 2026, employees may receive arrears from July, as per the rules. However, the actual arrears will depend on the official decision and order.

For example, an employee with a basic salary of ₹35,400 could receive ₹1,062 more per month with a 3% increase in DA. The arrears for three months would be ₹3,186. The arrears for four months would be ₹4,248.

Maharashtra State Cooperative Bank employees receive a 14.25% bonus.
Meanwhile, the Maharashtra State Cooperative Bank has announced a 14.25% bonus for its employees for the current financial year. This will provide relief to bank employees this Diwali. The actual bonus amount will be based on applicable rules and regulations.

Central government employees and retirees are now focused on the official announcement of the DA hike
. Approval of the 3% increase could result in an increase in monthly salary and dearness allowance. However, it would be inaccurate to assume that the increase is final or that the balance will be credited to their accounts before the announcement.

PC: Till today